WASHINGTON-L. Paul Bremer, head of the U.S.-led occupational authority in Iraq, told the Senate Foreign Relations Committee last week that mobile-phone licenses in the war-torn country are close to being issued.
Bremer’s remarks came in response to questioning by Sen. John Sununu (R-N.H.). Sununu wanted to know why the three regional cellular licenses had yet to be awarded in the September timetable set by the Coalition Provisional Authority.
Bremer replied that September was not over, then quickly added: “It will be [accomplished] in the next 10 days.”
Wireless firms and investors in the United States and overseas have grown increasingly anxious about the licensing delay and the relatively closed process used to evaluate mobile-phone applications in Iraq.
In addition to continued security challenges in Iraq-which have slowed rebuilding efforts-there appears to be an evolving power struggle between the CPA and Iraqi officials over future decision-making affecting telecom and other critical infrastructures. Such a dynamic-combined with lingering foreign ownership concerns and any efforts to ensure licenses do not fall into the hands of businessmen deemed loyal to ousted President Saddam Hussein -may help explain why the mobile-phone licensing decision is taking longer than expected.
Bremer last Wednesday also testified before the House Appropriations Committee in support of President Bush’s request for $87 billion in supplemental funding for reconstruction and military operations in Iraq. Of that total, $20.3 billion is earmarked for Iraq reconstruction grants. Nearly $4 billion would be set aside for restoration and expansion of telecommunications, water resources, transportation, housing and construction, health care and private sector development.
Bremer assured lawmakers there would be no sweetheart deals. “Every contract of the $20 billion for Iraq will be competitively bid,” he stated.
At a Senate Appropriations Committee hearing last week, Sen. Conrad Burns (R-Mont.) called for technological neutrality in Iraq mobile-phone licensing. Burns said U.S.-based CDMA or any other technology should not be locked out of Iraq.
A Burns aide said the Montana lawmaker plans to press the issue with U.S. and Iraqi officials during his trip to Iraq early next month.
Proponents of CDMA-engineered by San Diego-based Qualcomm Inc.-have expressed concerns that the mobile -phone licensing process in Iraq might be biased toward European GSM technology. GSM is already deployed on a limited scale in pockets of Iraq and broadly throughout the Middle East.
